By Paul Blustein
Washington Post Staff Writer

The Bush administration signaled yesterday that it will open the U.S. border at least partially to Mexican trucks, after an arbitration panel ruled that Washington's ban
on such vehicles violates the terms of the North American Free Trade Agreement.

The administration's stance marks a sharp departure from that of the Clinton White House concerning one of the most controversial aspects of NAFTA. And
although administration officials declined to say how or when the border might be opened, the prospect of Mexican trucks rolling onto U.S. highways triggered an
outpouring of warnings from the Teamsters union and other groups that argue that public safety would be endangered.

The 1993 free-trade agreement, which reduced or eliminated barriers to U.S.-Mexico trade in a host of sectors, contained a phased-in provision allowing Mexican
trucks to haul goods directly into the United States provided they meet U.S. safety standards. While President Bill Clinton championed NAFTA, he bowed to
pressure from the Teamsters by refusing to open the border, asserting that Mexican trucks couldn't be adequately monitored for safety problems.

Yesterday, however, a U.S. trade official told reporters that President Bush "has made clear he believes the NAFTA trucking provisions should be implemented, and
we intend to do that." As governor of Texas, where trade with Mexico looms large in the local economy, Bush favored allowing entry to Mexican trucks, and he has
consistently maintained that rigorous inspections would protect the driving public.

But the administration "has not yet made the decision on how we will carry out our NAFTA obligations," said the trade official, who spoke on the condition of not
being named. "We'll be consulting closely with Congress, state governments and other interested parties, as well as talking to the Mexican government about how to
proceed." He added: "As we move forward, the United States will not compromise highway safety in any way."

The statement came after a five-member panel unanimously agreed with Mexico that Washington was out of compliance with NAFTA by barring all Mexican
applicants for permission to haul goods in the United States. While Washington could impose its own safety standards on any truck entering the country, "the U.S.
must consider consider [applicants] on their individual merits, and may not refuse operating authority across the board," the U.S. trade official said, paraphrasing the
panel's ruling. The panel consisted of two Americans, two Mexicans and a British chairman.

The issue has become a sore point in U.S.-Mexico relations. Until the rules are changed, Mexican trucks cannot venture beyond a 20-mile zone at the U.S. border;
they go to giant lots and transfer their cargo to American trucks. Mexicans have reacted with indignation to the implication that their trucks are unfit for travel in the
United States, and President Bush's position is sure to help smooth things over for his trip to meet Mexican President Vicente Fox later this month.

But the Teamsters scheduled a news conference for their president, James P. Hoffa, today on Capitol Hill "to denounce the ruling," which they said "would allow
unsafe trucks to freely cross the border." And Public Citizen, an activist group founded by Ralph Nader that opposes free-trade pacts, issued a report asserting that
Mexico's truck-safety regulations are "virtually nonexistent" and that the United States lacks enough inspectors to check incoming trucks.

The Teamsters and their allies are urging the administration to maintain the ban on Mexican trucks and comply with NAFTA by permitting Mexico to impose
compensating barriers on U.S. products. "It is imperative that we continue to limit access for these dangerous trucks even if it means paying trade sanctions," said
Public Citizen President Joan Claybrook.

But Bret Caldwell, a Teamsters spokesman, conceded: "It certainly appears that the administration is looking to move forward with opening the border." During his
presidential campaign, Bush told Hoffa that he intended to do so, Caldwell said. Still, "we will continue discussions with the administration, to delay [the opening] as
long as possible," he said.

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